Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 832.290

  (1)   This section applies to an entity if:

  (a)   the entity is the recipient of a payment that gives rise to a * hybrid payer mismatch; and

  (b)   the * deduction component of the mismatch is a * foreign income tax deduction; and

  (c)   the secondary response is required (see subsection   (2)).

When secondary response is required

  (2)   For the purposes of paragraph   (1)(c), the secondary response is required unless, in the country in which the * foreign income tax deduction arose, the mismatch is covered by * foreign hybrid mismatch rules that correspond to this Subdivision, or by a law that has substantially the same effect as foreign hybrid mismatch rules that correspond to this Subdivision.

Inclusion of amount in assessable income

  (3)   An amount equal to the * neutralising amount for the * hybrid payer mismatch is included in the entity's assessable income for the income year mentioned in subsection   (4). The assessable income is taken to have been derived from the same source as the payment.

  (4)   The income year (the inclusion year ) is:

  (a)   if the * foreign tax period in which the * foreign income tax deduction arises falls wholly within an income year of the entity--that income year; or

  (b)   if the foreign tax period in which the foreign income tax deduction arises straddles 2 income years of the entity--the earlier of those income years.